S&P 500 Down Over 1% Ahead Of Fed Minutes; Market Volatility Increases

The S&P 500 dropped over 1% on Tuesday amid concerns over progress in U.S. debt ceiling talks.

The representatives of President Joe Biden and Republican lawmakers concluded another round of negotiations on Tuesday with no signs of progress.

The Federal Reserve is scheduled to release minutes from the Fed’s recent meeting on Wednesday, to get some insights into the central bank's next move.

Zoom Video Communications, Inc. ZM shares dropped 8% on Tuesday despite better-than-expected first-quarter results. Lowe's Companies, Inc. LOW shares gained 1.7% after the company reported better-than-expected first-quarter financial results.

Majority of the sectors on S&P 500 closed on a negative note, with materials and information technology stocks recording the biggest losses on Tuesday. However, energy stocks bucked the overall market trend, closing higher by 1% during the session.

The Nasdaq 100 fell 1.28% to close at 13,672.54 on Tuesday, amid losses in shares of Apple Inc AAPL and Tesla Inc TSLA.

The S&P 500 fell 1.12%, while the Dow Jones fell 0.69% to 33,055.51 in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index (VIX) gained 7.7% to close at 18.53 on Tuesday.

What is CBOE Volatility Index?

The CBOE Volatility Index, popularly known as VIX, is a measure of the equity market's expectation of volatility based on S&P 500 index call and put options.

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